ATTITUDE TO RISK
All investments carry some risk; you may get back less than you invest.. When working out your willingness to take the risk, consider your goals. How long term are they? How vital is it that this money is available on a determined date?
Some classes of investment are more volatile than others. This volatility – a measure of how the price of the asset is likely to fluctuate both upward and downward – is often used as a way of measuring risk.
Our attitude to risk tool helps you understand the level of risk you’re prepared to take for the returns you hope to achieve. Depending on your responses, we will then give you one of 5 risk profiles.
As the tool can’t take into account your individual circumstances or preferences we suggest once you recieve our feedback you check the description to ensure it’s right for you as you may feel that in a particular circumstance you want to take more or less risk. Look at the other risk profile descriptions, especially those immediately above and below, and consider whether these may suit you better.
We encourage you to revisit the tool from time to time – at least once a year – to monitor the progress of your savings and ensure you’re on track to achieve your objectives.
We just need a few details about you to ensure our records are up to date.
Client one details
Full Name
Address
Email address
Phone number
UK Resident?
Have you made a Will?
Is this up to date?
Do you have a lasting/ Enduring power of Attorney?
Dependent Details
Employment Status
Occupation
Employer Name
Net Monthly Income
Monthly Expenditure
Client Two details (If applicable)
Full Name
Is your address same as Client One?
Email address
Phone number
UK Resident?
Have you made a Will?
Is this up to date?
Do you have a lasting/ Enduring power of Attorney?
Dependent Details
Employment Status
Occupation
Employer Name
Net Monthly Income (If Joint just add in Client one)
Monthly Expenditure
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Have there been any material changes to your circumstances? (Not limited to these examples)
Please Detail any changes in personal circumstances
Client objectives
What would you say are your main objectives in terms of financial planning?
Have these changed since we last spoke?
If you have multiple plans and different objectives please tell us a little bit about the objectives for each plan.
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Just need to answer a few questions.
People who know me describe me as a cautious person
I feel comfortable about investing in the stock market
I generally look for the safer investments, even if that means lower returns
Usually it takes me a long time to make up my mind on financial matters
I associate the word “risk” with the idea of “opportunity”
I generally prefer bank deposits to riskier investments
I find investment matters easy to understand
I’m willing to take substantial investment risk to earn substantial returns
I’ve little experience of investing in stocks, shares or investment funds
I tend to be anxious about the investment decisions I’ve made
I’d rather take my chances with higher risk investments than have to save more
I’m not comfortable with the ups and downs of stockmarket investments
Using the risk profile descriptions we sent please indicate below what you think your risk profile is and then explain why. We will then analyse the answers you gave and we can discuss the findings. Please remember this inst a right or wrong answer. You might even find that you have different risk profiles depending on what type of investment. This information is crucial when determining where and what you should be investing in and we will discuss this in more detail.
Risk Profile Outcome
Why do you think you are this risk profile?
Annual Review
Do you wish to have a Annual Suitability review this year?
If yes, What would be your preferred method
Do you have any preferred dates/times for a review?
If no, please tell us why you feel like you font require a review this year.
Is there any other information you think we need to know at this stage?
Risk Profile descriptions
Cautious
Cautious Investors tend to regard themselves as cautious people and view risk negatively rather than as a source of opportunity. They typically have little or no experience of investment and do not find investment matters easy to understand. They can take a long time to make investment decisions and tend to be anxious about any investment decisions they have made. They typically look for safer investments rather than seeking higher returns. They are not comfortable about investing in the stock market and typically prefer bank deposits to riskier investments.
Moderately Cautious
Moderately Cautious Investors tend to regard themselves as quite cautious people and are inclined to view risk negatively rather than as a source of opportunity. They typically have limited experience of investment and do not find investment matters particularly easy to understand. They can take a fairly long time to make investment decisions and can be somewhat anxious about investment decisions they have made. They are inclined to look for safer investments rather than seeking higher returns. They are not particularly comfortable about investing in the stock market and tend to prefer bank deposits to riskier investments. They may be willing to take some risk, once the relationship between risk and higher returns has been explained to them.
Balanced
Balanced Investors do not particularly regard themselves as cautious people and have no strong positive or negative associations with the notion of taking risk. They will typically have some experience of investment and a degree of understanding of investment matters. They will usually make investment decisions reasonably quickly and don’t tend to be particularly anxious about investment decisions they have made. They can be inclined to look for safer investments rather than higher returns, but understand that investment risk may be required to meet their investment goals. While they will take investment risk, they are still not particularly comfortable with investing in the stock market and get more comfort from bank deposits than riskier investments.
Moderately Adventurous
Moderately Adventurous Investors do not typically regard themselves as cautious people and are inclined to view risk as a source of opportunity rather than as a threat. They generally have significant experience of investment and find investment matters fairly easy to understand. They tend to make investment decisions relatively quickly and are not usually particularly anxious about the investment decisions they have made. They typically look for higher returns rather than safer investments. They are reasonably comfortable about investing in the stock market and typically prefer riskier, but higher returning, investments to keeping money in bank deposits.
Adventurous
Adventurous Investors do not typically regard themselves as cautious people and usually view risk as a source of opportunity rather than as a threat. They generally have substantial experience of investment and find investment matters easy to understand. They tend to make investment decisions quite quickly and are not generally anxious about the investment decisions they have made. They typically look for higher returns rather than safer investments. They are comfortable investing in the stock market and prefer riskier, but higher returning, investments to keeping money in bank deposits.
What is Asset Allocation
Asset allocation is an investment strategy that aims to balance risk and reward by apportioning a portfolio’s assets according to an individual’s goals, risk tolerance and investment horizon.
Different types of investment are seen as having different risk profiles. Generally, equities (shares) are seen as more volatile than most bonds, for example, while government bonds (because they are backed by countries rather than companies), are generally considered safer than corporate bonds where the companies that issue them are more likely to become insolvent and unable to repay the debt . A mix of asset classes is one way to try to mitigate risk, while ensuring that your portfolio is well diversified in terms of global exposure and cyclical and defensive stocks should also help.
Cautious
Balanced
Moderately Cautious
Moderately Adeventurous
Adventurous
